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taxadvisor.uk, Chartered Certified Accountant

Category: Tax

Satisfied Customers: 4723

Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)

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Tax calculation required for April 2012/13 tax year.I need

Customer Question

Tax calculation required for April 2012/13 tax year.I need calculation within2 hours.I am an employee in Uk on PAYE with earnings of 24000 gross.I have a buy to let property with total rental income of £5400,less expenses of e.g letting agents,ground rent,insurances and property interest leaving £1315 less 10% net rent for wear and tear.The 2nd property income is from lodgers in my main residence who pay £490 per month plus £150 towards council tax,water rates.Should I claim rent a room relief or normal property income.My mortgage interest payment is about £310 per month and building insurance £10 per month and homeserve insurance £28 per month.Pease calculate tax liablity.

Thank you I really need the calculations as quickly as possible as I have a deadline today.I should add that there was a adjusted loss figure of £2400 from Previous Tax Year to carry over but I want to know 2012/13 actual tax liability

Thank for your answer,Please note I do not need to know what tax I need to pay on my P60 earnings from employment as it taken from my wages what I need is how much tax liability on the two property incomes for the tax year 2012/13.Please ignore the adjusted loss from last year I really want to know the cost of the tax from the rent payable from the £490 plus £150 towards costs.Please note my mortgage interest went up to about £450 per month this year .Does this make a difference to whether to use rent or room relief.Also,does HMRC count the £150 towards council tax water rates as taxable income .Thank you

Please clarify for me - is £150 towards cost a months figure of is it an annual figure as in your initial question you stated "The 2nd property income is from lodgers in my main residence who pay £490 per month plus £150 towards council tax,water rates."

How much do you pay for Council tax as it is not mentioned.Any contribution toward the expenses is deemed rental income..

The £150 figure is per calender month.The council tax yearly bill is £1040.The water rate yearly bill is £500.The buidings and contents insurance £120 per year and homeserve insurance for central heating cover About £300 per year .Thank you.Again it is the tax liability for my lodgers rental income £490 plus £150 (£640 each calender month) I need to know .Thank you

THANK YOU YOU HAVE HELPED A GREATLY.Please could you show me how the property interest affects the tax calculation as thinking about it I'm not sure exactly how much is interest and how much is capital and finally one more thing if I earn 23000 and get 11 or 12000 in gross rental income it will not move me up to the 40 per cent tax bracket will it.

Customer:replied 2 years ago.

Sorry I have just received my p60 figures for tax year12/13.My total p60 earnings were 23249.40 and tax deducted was 3028 pounds if possible could you work out extra tax I need to pay assuming I go for normal property taxation not rent a room relief.Thank you

Please could you show me how the property interest affects the tax calculation as thinking about it I'm not sure exactly how much is interest and how much is capital and finally one more thing if I earn 23000 and get 11 or 12000 in gross rental income it will not move me up to the 40 per cent tax bracket will it.

[a]

I showed you a comparison in my previous table .. the expenses under "no exemption" include interest payments where as the amount under "exemption" is standard exemption limit.

It is taxable income after personal allowances that determines whether you are likely to pay tax at higher rate or not. It is not the gross rental income but profit from property income that is treated as income for tax purposes.

I hope thai is helpful and answers your question.

If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.

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